PH FedACTion: Financial Regulatory Updates
Daily Financial Regulation Update -- Saturday, March 5, 2022
March 05, 2022
FedACTion Task Force
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Congress
U.S. Senate
Committee on Banking, Housing, and Urban Affairs
Committee on Financial Services
Representatives Request Information on Financing of Domestic Violent Extremism
March 4, 2022
Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee, Senator Sherrod Brown (D-OH), Chairman of the Committee on Banking, Housing, and Urban Affairs, and Congressman Josh Gottheimer (D-NJ), sent a letter to the Government Accountability Office (GAO) requesting a review of the methods by which domestic violent extremists (DVE) and homegrown violent extremists (HVE) fund their activities and how financial institutions are addressing the risks posed by these extremists.
Federal Agencies
U.S. Department of the Treasury
FATF Strengthens Financial Transparency Standards and Updates Evaluation Methodology
March 4, 2022
The Financial Action Task Force (FATF) concluded its sixth plenary since the start of the ongoing COVID-19 pandemic, in a hybrid virtual/in-person session. The FATF agreed upon a revised standard to combat the misuse of anonymous shell companies and set the stage for its members and the broader global FATF network to be held accountable to more stringent standards.
Remarks by Secretary of the Treasury Janet L. Yellen at Stanford Institute for Economic Policy Research's 2022 Economic Summit
March 4, 2022
Secretary of the Treasury Janet L. Yellen provided remarks on economic disparities across communities and racial groups. The Secretary argued that targeted investments to address these disparities can not only mitigate growing inequality, but also propel sustainable macroeconomic growth.
Federal Reserve Board
Updated Primer on the Forward-Looking Analysis of Risk Events (FLARE) Model: A Top-Down Stress Test Model
March 4, 2022
The Federal Reserve Board released a technical note describing the FLARE model, which is a top-down model that helps assess how well the banking system is positioned to weather exogenous macroeconomic shocks.
Federal Reserve Board announces six new members of its Community Advisory Council (CAC)
March 4, 2022
The Federal Reserve Board announced six new members of its Community Advisory Council (CAC). The new members are:
- Ivey Allen, President, Foundation for the Mid South;
- Melanie Hogan, Executive Director, Linking Employment Abilities and Potential;
- Chan U Lee, President and CEO, Devine & Gong, Inc.;
- Christie McCravy, Executive Director, Louisville Metro Affordable Housing Trust Fund;
- Ceyl Prinster, President and CEO, Colorado Enterprise Fund;
- Eric Robertson, Executive Director, The Formanek Foundaction.
- Press Release
Federal Reserve Bank of New York
Monetary Policy and the Run Risk of Loan Funds
March 4, 2022
The Federal Reserve Bank of New York released a staff report documenting that loan funds are significantly more susceptible to run risk than any other category of debt funds, including corporate bond funds. The report establishes a link between loan funds' flows and monetary policy, based on the institutional characteristics of their portfolio holdings.
Conference of State Bank Supervisors
Adapting to the Digital Age: How are Core Services Providers Viewed?
March 4, 2022
The Conference of State Bank Supervisors released part 5 of their Adapting to the Digital Age Series on how community bankers view their core service providers.
Office of the Comptroller of the Currency
Amanda Freedle Named Deputy Comptroller and Chief Accountant
March 4, 2022
The Office of the Comptroller of the Currency (OCC) announced the selection of Amanda Freedle to be the agency's next Deputy Comptroller and Chief Accountant.
Securities and Exchange Commission
Send Lawyers, Guns and Money: (Over-) Zealous Representation by Corporate Lawyers; Remarks at PLI's Corporate Governance – A Master Class 2022
March 4, 2022
Commissioner Allison Herren Lee presented a speech at PLI's Corporate Governance – A Master Class 2022 considering whether the SEC should adopt (and enforce) a minimum set of standards for lawyers who practice before the Commission to better protect investors and markets.
State Agencies
California Department of Financial Protection and Innovation
DFPI Issues Guidance Regarding Russia Sanctions
March 4, 2022
The DFPI issued guidance reminding licensees of their obligationsunder regulations issued by the U.S. Treasury Department's Office of Foreign Assets Control.
International
European Commission
Press statement by President von der Leyen with US Secretary of State Blinken
March 4, 2022
European Commission President von der Leyen issued a statement at a press conference with US Secretary of State Blinken on the cooperation between the EU and the US in response to Russia's invasion of Ukraine.
Bank of England
Financial concerns and the marginal propensity to consume in Covid times: evidence from UK survey data
March 4, 2022
The Bank of England released a staff working paper studying how household concerns about their future financial situation may affect the marginal propensity to consume (MPC) during the Covid-19 pandemic.
FX option volume
March 4, 2022
The Bank of England released a staff working paper studying the information content of foreign exchange (FX) option volume using a unique dataset on over-the-counter FX options with disclosed counterparty identities and contract characteristics.
External business of Monetary Financial Institutions operating in the UK - 2021 Q4
March 4, 2022
The Bank of England released Q4 2021 statistics on all claims and liabilities to other countries by UK-resident banks and building societies.
Administration Changes
Vacancies
Federal Reserve Board
- Vice Chair for Supervision – Sarah Bloom Raskin nominated January 14, 2022 (nomination hearing held on February 3, 2022)
- Governor – Lisa Cook nominated January 14, 2022
(nomination hearing held on February 3, 2022) - Governor – Phillip Jefferson, nominated January 14, 2022
(nomination hearing held on February 3, 2022)
Federal Deposit Insurance Corporation
- Chair – Vacant (Martin Gruenberg serves as Acting Chair)
- Vice Chairman
Office of the Comptroller of the Currency
- Comptroller – Vacant (Michael Hsu serves as Acting Comptroller)
Commodity Futures Commission
- Three (3) Commissioner Vacancies
Appointments/Confirmation Hearings
U.S. Department of the Treasury - Janet Yellen (effective January 26, 2021)
Federal Reserve Board
- Statement by Federal Reserve Board Chair Jerome H. Powell on his nomination by President Biden (November 22, 2021)
- Statement by Governor Lael Brainard on her nomination by President Biden (November 22, 2021)
- Secretary of the Treasury Janet L. Yellen Statement on Federal Reserve Nominations (November 22, 2021)
- Statement by Secretary Walsh on Federal Reserve Nominations (November 22, 2021)
- Brown Statement on the Renomination of Jerome Powell for Fed Chair (November 22, 2021)
- Toomey Statement on Renomination of Jerome Powell for Fed Chair (November 22, 2021)
- Brown Applauds Biden's Nomination of Governor Lael Brainard for Vice Chair (November 22, 2021)
- Brown Applauds Biden's Nominees for Fed Board (January 14, 2022)
- Toomey Statement on President Biden's Fed Nominees (January 14, 2022)
- Waters Applauds Nominations of Sarah Bloom Raskin, Lisa Cook, and Philip Jefferson to Leadership Roles in the Federal Reserve (January 14, 2022)
- Statement by Secretary of the Treasury Janet L. Yellen on Federal Reserve Nominations (January 14, 2022)
Federal Reserve Bank of New York
Consumer Financial Protection Bureau - Rohit Chopra (effective October 12, 2021)
- Statement by House Committee on Financial Services Chair Maxine Waters on Rohit Chopra's Confirmation (September 30, 2021)
- CSBS Statement on Rohit Chopra Confirmation as CFPB Director (September 30, 2021)
Securities and Exchange Commission - Gary Gensler (effective April 17, 2021)
- LizAnn Eisen Joins Division of Corporation Finance as Deputy Director, Disclosure Program (January 27, 2022)
- Lori H. Price Named Acting Director of the Office of Credit Ratings; Ahmed Abonamah to Leave SEC (February 1, 2022)
- Kelly L. Gibson, Director of the Philadelphia Regional Office, to Leave the SEC; Scott Thompson and Joy Thompson named Office Acting Co-Heads (February 11, 2022)
Small Business Administration - Isabella Casillas Guzman (effective March 16, 2021)
- Statement by Administrator Guzman Applauding President Biden's Appointees to Lead SBA Regional Offices (November 18, 2021)
- Statement by Administrator Guzman Applauding President Biden's New Appointees to the U.S. Small Business Administration (December 6, 2021)
- Statement by Administrator Guzman Applauding President Biden's New Appointees to the U.S. Small Business Administration (January 25, 2022)
Commodity Futures Trade Commission – Rostin Behnam (effective December 17, 2021)
- Kristin Johnson, Nominee for Commissioner of the Commodity Futures Trading Commission (September 13, 2021)
- Christy Goldsmith Romero, Nominee for Commissioner of the Commodity Futures Trading Commission (September 13, 2021)
- U.S. Senate Unanimously Confirms Behnam as Chairman (December 17, 2021)
- CFTC Chairman Rostin Behnam Announces Executive Staff Appointments (January 20, 2022)
- CFTC Chairman Rostin Behnam Appoints Initial CFTC Leadership (January 25, 2022)
Financial Crimes Enforcement Network
National Credit Union Administration - Todd M. Harper
U.S. Department of Housing and Urban Development - Marcia Fudge (effective March 10, 2021)
- Adrianne Todman Sworn in as Deputy Secretary of Housing and Urban Development (June 15, 2021)
- Statement from Secretary Marcia L. Fudge on the Confirmation of Alanna McCargo (December 15, 2021)
- Statement from Secretary Marcia L. Fudge on the Confirmation of Alanna McCargo (February 15, 2022)
Federal Housing Finance Agency – Sandra L. Thompson
- Brown Statement on the Selection of Sandra Thompson to Lead FHFA (December 14, 2021)
- Waters Applauds Biden's Nomination of Sandra L. Thompson as Permanent Director of the FHFA (December 14, 2021)
- Statement from HUD Secretary Marcia L. Fudge on the Nomination of Sandra Thompson (December 14, 2021)
U.S. Department of Education - Dr. Miguel Cardona (effective March 2, 2021)
- Secretary Cardona Statement on Confirmation of Education Department Officials Brown, Rodriguez and Graham (October 6, 2021)
- Statement from Secretary Miguel Cardona on the Confirmation of Catherine Lhamon as Assistant Secretary for the Office for Civil Rights (October 20, 2021)
- Statement by U.S. Secretary of Education Miguel Cardona on the Confirmation of Sandra Bruce as the Department's Inspector General (December 3, 2021)
- Statement by U.S. Secretary of Education Miguel Cardona on President Biden's Nomination of LaWanda Toney (December 16, 2021)
PH Client Alerts
Click here to read more from our Coronavirus series.
Legislation/Legislative Updates
Click here to view the full text of the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"), Enacted March 27, 2020.
Click here to view the full text of the Paycheck Protection Program Increase Act of 2020, Enacted April 24, 2020.
Click here to view the full text of the Paycheck Protection Program Flexibility Act of 2020, Enacted June 5, 2020.
Click here to view the full text of the Consolidated Appropriations Act, 2021, Enacted December 27, 2020.
Click here to view the full text of the American Rescue Plan of 2021, Enacted March 11, 2021.
Click here to view the full text of the PPP Extension Act of 2021, Enacted March 30, 2021.
Click here to view a running list of proposed legislation from the Senate Committee on Banking, Housing, and Urban Affairs, Senate Committee on Small Business and Entrepreneurship, House Committee on Financial Services, and House Committee on Small Business.